Mishawaka City Council Approves Electrical Rate Plan Increase

On the evening of Thursday, May 30th, the Mishawaka City Council voted in favor of an electrical rate plan increase. This proposal has been in development for about one year, with Mishawaka Utilities, Wolverine Power Cooperative, and Baker Tilly collaborating to devise a rate increase that would be sustainable for the city of Mishawaka while keeping electric rates low. 

Mishawaka Utilities’ current rates, established under the old ordinance have served the city well. However, due to recent changes within the federal government and a higher demand than supply, the current plan will not be sustainable moving forward. If the current electric rate had not changed, rates would have drastically increased by 34% at once in 2030. The new electric rate plan, starting in 2025, will increase by 3.75% per year until 2030. This plan will help stabilize energy expenses from 2030 to 2035, improving the forecasting of financial requirements for the next decade. 

It’s important to note that Mishawaka Utilities Electric (MUE) has not raised rates in over a decade. In fact, we took proactive measures to reduce rates by 7% annually in both 2021 and 2022. Even with the scheduled increase of 3.75% per year for the next six years beginning January 1, 2025, MUE ratepayers will only be back to paying 2020 rates by the beginning of 2028. Despite the modest increases, MUE remains one of the lowest municipal electric utilities in the state of Indiana, demonstrating our commitment to providing affordable and reliable service to our customers. 

The new rate plan was developed with ratepayers’ best interests in mind. Executing this plan will provide ratepayers with security and predictability while also being cost-effective. Mishawaka Utilities will continue to provide grade-A level power supply while ensuring reliable electrical services. 

The women and men of the Mishawaka City Council understand that nobody likes raising rates, but they collectively agree that executing this electrical rate plan is the safest and most effective way to guarantee sustainability at a fair and reasonable price. 

We appreciate the community’s understanding and support as we implement these necessary adjustments to ensure a stable and bright future for Mishawaka